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This is an excellent question. Financial managers who deal with money (otherwise known as fund manager) face many challenges. However, one of the greatest, if not the great challenge, is to find best ways in which to invest money. In connection to this point, there are a few main challenges.
First, managers need to know where there will be greatest growth. There are so many options out there that managers need to master many fields. For example, will money be made in bonds, precious metals, small companies, equities, international markets, real estate and the list goes on? Money managers need to do a lot of research.
Second, manager also need to be good timers. When is the right time to buy and sell? To be sure, no one can time the markets, but there should be some expertise in when to take profits and to cut losses. This is a big challenge.
Finally, in a difficult financial environment, managers need to learn also the art of patience. Sometimes it is best to hold onto cash. However, this too is a challenge, because investors might get upset that nothing has been done. After all, they too could hold onto to cash!
In conclusion, there are many challenges in a volatile world.
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